The European Union (the "EU") Parliament has approved the Markets in Crypto Assets ("MiCA") regulation.
Today may be cited as a historical and monumental day, not just for the crypto ecosystem but for the financial system as a whole. The Markets in Crypto Assets regulation was finally officially approved by the European Union Parliament with 517 voting in favour and 38 voting against a new crypto licensing regime.
MiCA becomes the first pan-national regulatory framework for crypto assets in the world covering crypto assets issuers as well as crypto assets service providers, and "marks the end of the wild west era for the unregulated world of crypto assets" (Ernest Urtasun, a Spanish MEP). Its goal is to safeguard consumers and investors, maintain financial stability, and promote innovation.
MiCA ensures a cohesive strategy for digital asset regulation throughout all 27 EU Member States, allowing companies authorized in one country to easily "passport" their operations into other Member States with minimal supplementary paperwork.
Expected to be implemented between mid-2024 and early-2025, the regulation establishes Europe as a desirable location within the cryptocurrency industry.
In a separate decision, the European Parliament voted 529-29, with 14 abstentions, in support of the Regulation on Information Accompanying Transfer of Funds and Certain Crypto Assets (Recast) known also as Transfer of Funds regulation. Such regulation mandates crypto assets operators to identify their clients as a means to combat money laundering.
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